tv Nightly Business Report PBS August 24, 2009 6:30pm-7:00pm EDT
captioning sponsored bwpbt >> paul: from china germany to franc economies around the globe are perking up. we look at whether tt rising tide wilhelp lift the u.s. economy. >> susie: prospects for revery are definite lifting oil pric. crude continued its marchigher on hopes aecovery will bring with it a big boost in deman paul: "cash for clunkers" heads to history's sap heap but deals are getting a little extra time to cross thei"t's" and dot thr "i's". so what's next for the u.s. auto dustry? comi up, some answers from a noted analyst. >> susie: this recruit is trying to fi 300 positions buhe's swamped witthousands
this program wasade possible contributions to your pbs stion from viewers like you. thank you. >>usie: good evening everyone. oil pric closed at a new high for the ye: $74.37 a barrel. in new york ading october crude futures ro 48 cents to settle just y of $75. prices have doubled since february. so what's eling the run-up: optimism about a gbal economic recory. as scott gury reports, while the debate over the state the american economy continues there are fresh gns the reverys well under way in other parts of the world. >> reporter: enomists once belied the american economy, first to fall into dee recession, wouldead the world ouof it. not any more. china has already bounceback from a shortecline.
germany is now repting positive groh after a severe recession. and france is also repting growth. all these countries implemend stimulus progrs. bruce kasman of jp morn says a world wi economic recovery will hp the american recovery he believes is alreadynder way. >> we're already seeing the ct that u.s. exporters e actually starting to see growthn their sales abroad whichs a very unusuaevent to happen before the economy begins to rever. >> reporter: a world-wid recovery would lerally be the risi tide which could lift all ships. bob bruscaf fact and opinion research notes that industri orrs for euro-zone countries posted their besgain in 19 monthsn june. >> it's curious me that so manyeople are so pessimistic about the u.s. proects when so ma other countries in the world are already involvedn an economic recery. so i think that we havlots of evence here that our recovery is growing. i think its going to ctinue and i thineurope's recovery is looking more solid.
>> reporter: some the peimists about the u.s. economy worrnot about the near term but about 2011 and beyo, when governmenstimulus ends. others s world wide demand replacing those spending programs. >> pary due to the synchronization of growth ross the world the chances th once we get thigoing that its going to get turned off are actuly unlikely. and where we are vy much mindful of is the idea thathe synergies across bordersnd synergies acro financial marks are like to cause significt positive feed back loops here. itouldn't be a straight line but i think the chans of a double-dipre actually quite small over the coming quarte. >> reporter: there have en some concerns out inflation in itain. but confidence among busins leaders there rising. and mo project the u.k. will join the u.s. in reporti positive growth is quarter. ott gurvey, "nightly busines report", new yor >> pl: that strength in the oil pit combined with ins in ovseas markets to send stocks on wall street higheat the open.
it appears that the rket is making a comeback. for the first time in the ye the number of mpanies filing for ipo's is othe rise so far, only 21ipo's hav raised and theargest monthly crease in a year. and the trend continues. but last month ane, 12 companies led their intentions to go public with the secuties and exchangeommission the laest monthly increase in a year. anthe trend continues: nine firms have filed so r this month. late last year, the ipmarket virtually llapsed, with only 1 company going public durinthe entire fourtquarter. >> susiebank failures are also on the rise. far this year, 81 banks hav closed. veteran banking alyst richard bo is forecasting that up to 200 more u.s. banks coulfail. but he adds that there are n enough healthy banks tbuy the ones thaare struggling. federal regulators now sm poised to loos restrictions on prate equity firms seeking to buy failed banks. on wednesday, the ic is
expected tvote on the issue. in court filings today the b of a defended the fairness of the proposed $33 million settlemt with regulatorsver bonuses pa to merrill check executives calling it a conructive colusion. the penay "sikes the right bance between violations and shareholder protection". a federal judge rejected the settlement sing he wanted to know who was responble forhe bonus decision. the judge is expted to rule on thsettlement september 9. judge jed rakoffs expected to ru on the settlement september 9th.
>>usie: irish drug maker warner chilcott is buying procter and gamble global pharmaceical business for $3.1 billion. that unit makes escription drugs ke actonel for bone loss and asacol for digesti disorders. ose drugs generate $2.3 billion in annl sales, adding out $540 million in profits p-and-g's bottomine. warner chilcott expects to kp most othe p-and-g pharceutical employees, the deal's expected to clo by the end of t year. innother acquisition, charlotte russe is bei taken private by advent inrnational. the private equity firm is paying $380 millioor $17.50 a share for the mall-basedeller of young womens clotng. the offer is a 27% premium t friday's closingrice. charlotte russe has 500 stes
and those are the stocks in e news tonight, sie. >> susieit's the end of the road for the government's sh for clunkers pgram. the $3-bilon rebate plan ends tonight, for consumers. but late today, dealships were givenn extension. they now havuntil noon tomorrow to submit their paperwork for repaymt. around the country, consers filleduto showrooms to trade in their g guzzlers for a more fuel efficient car. transportation secretary r hood says up to 800,000 new cars have been solas a result of t program. th morning, car dealers submitted vouchers for me than $2.5 billi. >> susie: the ranks of t unemployed have own to almost 15illion. at the se time the number of job openings has plummetedince the recessiobegan. now there arsix times as many job seekers as there are available jobs. so how dyou stand out as a job applicant, when the compition is steep?
as dana bateeports, it's often about who you know. >> reporr: looking for a job? washington hospital cent is hiring. ght now they have almost 300 job openings. but here the hitch: recruiting director dennis hoban sa they also have ousands of applicts. >> our applicant pl has increased significantl one of the fous phrases in reuitment circles right now is, same number of ndles, much biggeraystack. >> reporr: last week, hoban received 1,000 applicationfor entry-level rvice positions, uble the normal volume. at's why career coach sondra levitt says a candate needs a clea focused resume to get noticed. >> any time you ha a good resume, should reflect, ally, what have you done, an what impact did u make? so that'the first step. e second step is networking, networking, networng. >> reporter: and is easy to see wh about 75% of jobs are landed through networkin to make networking wk for you levittuggests clearly entifying the industry you want to work in and e
companies thatnterest you. then make a list of contac you can talk to, who canelp you get connecteto people inside your target mpanies. if you'vexhausted your neorking list, useocial networkingites like linkin and facebook. >> reporter: the pnt of a site ke linkedin is to find peopl working at the cpany where you wa to work. you may find that a frie of a friend wor there. and by cnecting with that person, you can get your fooin the door. it's all about gting someone insi the company to know who you are. and gettinbuzz around your me. >> so if you can gethat person to walthat resume down the hallway and hand it to somne who's hiring and say, ou really need to speakith this person,"hat's the optimal way. that's how you setourself apart from the hundreds resumes that come across hiring manager'sesk or an hr pers's desk. >> reporter: neverthels, labor economislawrence mishel says even top-notch networking n't change the ft that there just aren't a lot of jobs out the. >> wre in an unfortunate situation now where the are
six people unemployed r every job openg. so it's not gog to be easy for people to findork. >> reporter: but remember, en if employers a searching for a edle in a very big haystack. that needle could be you. dana bate, "nitly business repo", washington joining us now, orge magliano, dictor of automotive research at global insight. >> hi, h you doing? >> good. thanks. s this cash for clunkers program worth it? >> most defitely. it has bn a rousing success. it was amazing the way it started off with the first billion llars and we thought when they put the extra $2illion in things would slow down a bit. but viously the consumers warmed up to thing and theyave been going to the show rooms in droves. and it really is -- it' helped pick up sales in the short run
and is going to fee its way back into production and employment and into e economy. >> wel do you think that you're going s more momentum on auto saleill this spark a covery for the autoindustry? >> no. what's goingo happen is once the stimulus is removed, onc the program is stopped,nd there's no mor money coming, sales will drop back down. drop back down to e levels that ty were at the beginning of the year. that's becau of the recession, but what's happened isbecause of the program, we he seen maybe abt a third of the buyers that have come , this is going tbe new business. people that wou have never bought a new c truck, it wod have driven their clunker into the ground forever took advantage ofthis. this is additional business a it's caned out the unwanted ventory of the 2009 mods at e end of the model run. excellent for th dealers. >> what doesin mean for the 2010 models? what does it mean terms of
car prices? >> what means they co in clean and it also means at this point in time we suld be able to see better pricesn the 2010. when i say bter pricesless in the wayf incentives, less in the way of those big gi backs on the hd that the dealers have -- deale and the manufacturers need to put onhe car and truck sell them. that cellent. >> h this cash for clunkers prram given you an indications of how automakers are going to do going forward? which automakers are goingo do better in ne phase? >> well, i mean, it's helped everyby, but obviously, the panese specifically, toyota and nda, have come really above the top of the lis andord has done very well for the detroit manufacturers. >> how about gm and chrysler how did they fare? >> well, they stard out fast and en lost momen up. th of them blame it on th la of ventory.
ey were in baruptcy, hut down their plas -- shut down eir plants for an extended periodf time and they were unprared. >> i've hed some of the tomakers are starting to ram up production anin anticipationf more demand. arthey jumping the g here? is this emature? >> no. at this point in time, inventories are tight. by the end of the month they'll tight. the annoced increase by all the manufturers really is to replenish inventory, bring the stocks more bk to line, normal stocks. if they contin toroduce and overoduce at the beginning of next year, then it's different. theyave got to be in tuneo threcession. to the fact thathe market is going to go back pretty mh to where it wasnd thent's going to build slowly ashe economy develops momentum througut 2010. >> now, i underand that during is cash fo clunkers progr that usecar sales picked up as well. do you see that coinuing? >> yeswe do. used car ses generally do
betterhen the economy is so, and th time the economy was so weak, number one, it ht all the entire market. both new and used. and of course, the iue with e used car prices and ridual values w the trucks -- trucks and inventory, trucks coming off the fleet that's helped the redual values and pushed them up. th's good for future business. >> very interestininformation. thank u so much for coming on e program, george. >> thank you for having me. >>y guest tonight, george magliano, director of tomotive research. >> paul: tomorrow, wn it comes to theeb economy, "free" always costs the same somethg. we'll explain. >> susie: the bure of prisons saidoday bernard madoff is not terminally ill and h not been diagnod with cancer. that statement debunks a "ne york post"eport that said the wall street swindler itelling fellow inmates he isying of cancer.
one inmate told the post moff was taking0 pills a day and not doing well. madoff's lawyer said he wod not comment onis client's medil or emotional condition. >>aul: the former president and chf operating officer of monsteworldwide has been convicd of securities fraud and conspiracyn a stock optionbackdating scheme. prosecutors said jamesreacy understated moter's mpensation expenses by more than $300 million. he now faces up to 25 years prison. monster worldwide id today's verdt closes an unfortunate chapter in theompany's history.
>> susie: here's a look at what's happening tomrow: >> susie: tonighs commentator hasome tips for the president when it comes to aecond stimulus pkage. he's glennubbard, dean of lumbia's graduate school of business and formechairman of the uncil of economic advisors. >>resident obama will return om vacation to face calls fo additionaltimulus to lift the flagging u.s. economy. gin the ineffective design of his first stimulusackage, he
would be we to focus on two guidelines. the first guidele is that the downturn has been driv by falling asset prices, ich weaken the bance sheets of hoeholds and financial institutions, curtailing bh lending and spding. licies to stimulate the economy should focus on blting falling asseprices. second, actions shld be consistentith good long-term policy. temporary tax chans do little to aect aggregate demand. and expensivstimulus packages lead taxpayers to expect higr future taxes, owing the recove. the key toction? keepaxes on savings low. the tax code offers tent tools to stop falling asset pres. retaing the current low tax te on dividends and capital gains would be an imrtant first step and reducing corporateax rates will rai both stock prices and investment. ways and means chair charles rangel has indicat an interest
in cutting the corporate tax from 35% to 28%. higher investment makes is a potent stimus that is not too costly. some recent studiesuggest we could cut the coorate tax rate several percentage points wi little loss of renue. and if the congress has noood ideas? the present should just say no. i'm glenn hubbard. >> paul: recapping today's market action, walstreet starts theeek with a split cision: the dow gains points while the sdaq loses nearly that much. to learn more about thstories in tonig's broadcast, to watch our streaming video and take rt in our daily blog, go to "nightly business report" pbs.org. you can also emails at email@example.com. >> susie: and finally night, you know t old saying, if you want something done, ask ausy person to dot? well, a new study finds th's probably not t best course of tion. researchs at stanford university found therains of lti-taskers don't work as efficieny as you might think.
e study looked at two groups those who utinely consumed ltiple media such as interne television and cell phonesand those who dinot. in a series of three cssic psychology tests for aention and memory, the "low multitaskers" consisntly outdid their "high multisking" counterpar. and multi-taers were less able to ignore irrelent information. so paul, the takway is the peopleho multitask the most are the ones who are theorst at it. >> so i should beappy i can't run and chew gumat the same time >> i guess so. >> great. >> wtoes that mean for me when i think i'm multitasker. ohno. >> beware. >> sie: that's nightly business report for monday, august 24. i'm susie gharib goodnight everyone. and good night to you paul >> paul: goodnig susie. i'm paulangas wishing all of you the best of good buys. "nightly biness report" is made possible by: